The allocation of a plant asset's cost to expense over its useful life is called ________.
A) residual value
B) book value
C) accrued revenue
D) depreciation

Question

Quizplus · Accepted Answer

The allocation of a plant asset's cost to expense over its useful life is called depreciation. Residual value is the estimated amount that a company will receive when it sells an asset at the end of its useful life. Book value is the cost of an asset minus its accumulated depreciation. Accrued revenue is revenue that has been earned but not yet received.

The Allocation of a Plant Asset's Cost to Expense Over